Review Of Week’s Stock Exchange Transactions

Press, Volume CII, Issue 30213, 19 August 1963, Page 16

Review Of Week’s Stock Exchange Transactions

[Bg Our Commercial Editor)

The weight of more buying orders again pushed share prices higher last week. New Zealand shares made five gains for every two losses and overseas issues made three gains for every loss. The week was also notable for the heavy volume of trading. In Christchurch Tuesday’s 30,000 shares, notes and rights was the highest daily figure recorded locally in recent years, and the week’s total exceeded 90,000 shares.

Leading New Zealand issues made nearly two gains for every loss. Notable rises included those of Alliance Textiles (Is), Coulls, Somerville, Wilkie (Is), Dunlop New Zealand Rubber (Is 6d), J. J. Niven (Is), Milne and Choyce (Is), New 7 Zealand Cement (2s 3d), New Zealand Farmers’ Fertiliser (Is 3d), New Zealand Paper Mills (3s) and Ross and Glendining (Is 9d). Most of the falls by New Zealand leaders were slight. New Zealand Insurance lost 7d, allowing for the dividend, and South British fell 3d.

The minor New Zealand issues were particularly firm, rises exceeding falls by more than three to one. Many of these gains were made by shares not traded in recent months, thus reflecting the higher level of share prices generally. Gains of Is or more were made by 29 New Zealand issues, compared with four falls of similar magnitude. The overseas (mainly Australian) issues traded in New Zealand rose in sympathy with the trend in Australia. The Federal Budget, presented on Tuesday, was somewhat disappointing for investors, who had been hoping for lower tax rates on individuals’ incomes. The market had reached record levels on Tuesday. Sydney Index Up Prices slipped on Wednesday but by Friday the Sydney Stock Exchange index had recovered to within lj points of Tuesday’s record figure, more than two points above the previous week’s close. Expectations of benefits from the Federal Budget, presented on Tuesday evening, took share trading to peak levels on the Melbourne

Stock Exchange last week, according to a Melbourne cable. Some of the earlier momentum subsided after the Budget, but the market remained very firm with sections likely to gain from Budget concessions getting good support. The steady flow of favourable company reports together with an increase of 17 per cent in Australia’s wool cheque for July helped maintain a strong tone. The stock exchange index of 50 leaders advanced by 1.2 to 109.6 for the week. Company Gains Bitumen and Oil lifted earning rate 40 per cent. Coates reported a 33 per cent gain in turn-over, Dawborn Steel’s profit was 40 per cent higher and Cellulose more than doubled its earnings for the year. Market leaders 8.H.P., Colonial Sugar, Drug Houses, Herald and Rothmans all advanced fractionally over the week, while Australian Consolidated Industries and E.Z. Industries were slightly cheaper. Seventeen frequentlytraded Australian shares fetched premiums averaging 4 per cent on the New Zea-

land market on Wednesday. A week earlier the premium on a similar range of shares averaged 4.35 per cent, and two weeks earlier 3 per cent The latest figure represents a “price” of £NZB3 5s for £AIOO. A reminder of the restrictive provisions of Victorian company finance was last week's notice of meeting to “proprietors” of the Bank of New South Wales. Although they have already unanimously approved the proposed changes in the company's deed of settlement (articles of association), they must meet once more before this resolution becomes effective. At the next meeting the resolution must be carried by at least half the votes of proprietors on the Sydney register of the company. This will, no doubt, require extensive canvassing for proxies, but, as the bank's New Zealand manager said, “every effort is being made to ensure this archaic provision does not defeat us.” N.Z.F.C. Step Nearer home, the N.Z. Farmers’ Co-operative Association took a further step towards the modernisation of its articles of association and capital reconstruction last week. No fewer than five meetings—one for each class of shareholders and a combined meeting of all classes of shareholders —were necessary to approve the proposals. The scheme, which has already been before the Supreme Court, still has to be ratified by the Court and it will be some months yet before tire four classes of 10s shares are placed in the quotation list by a single class of 5s shares. The revisions of the articles of association pf both these companies, and the simultaneous capital changes, should improve their marketability and enhance their market values. In the case of the Farmers' Co-operative, it should help to widen the market for their shares, now virtually unknown outside Christchurch. Higher profits were announced during die week by the Canterbury Terminating Building Society. Consolidated Brick. Cory, Wright and Salmon, and Clyde Engineering. Cable, Price, Downer and Bonds Hosiery both issued company reports saying prospects for the year were good. Stock Yields Yields to final maturity on Government stock fell last week. Average short term fell 4d to £4 10s sd. average medium term 5d to £5 Is 5d and average long term 2d to £5 2s 2d. Yields to maturity on Government stock traded in Christchurch last week: 4? per cent 15/6/1965, £4 8s per cent; 3 per cent 15/6/196164, £4 9s 4d per cent; 4? per cent 15/5/1967, £4 16s IJd per cent: 5 per cent 15/5/1966-68, £4 18s lid per cent; and 5 per cent 15/10/1966-68, £5 0s 9Jd per cent. Details of transactions on the Christchurch Stock Exchange last week: Government stock, £6905 (against £5970 the week before); local body and company debenture £9700 (£2750); preference 3800 (6025); banks, ■ 703 (1321); breweries, 2400 (5250); frozen meat, 435 (1650); gas, 100 (nil); insurance, 1000 (850); loan and agency, 2847 (5081); timber, 812 (812); woollens and textiles, 8025 (9152); Australian. 15,442 (13.105); N.Z., 51.321 <16.515); mining, 7900 (5600>: unlisted. 100 (115); total. 94.885 (65.477).